Croatia ferts maker Petrokemija raises $32.8m in recapitalisation

14 August 2013 10:53[Source: ICIS news]

LONDON (ICIS)--Croatian fertilizer producer Petrokemija has successfully completed two recapitalisation rounds that have raised Croatian kuna (HRK) 186.2m ($32.8m, €24.7m), the company said on Wednesday.

State-controlled Petrokemija - which has an overall solid and liquid fertilizers capacity of 1.35m tonnes/year – has thus seen its capital stock increase to HRK754.2m from the recapitalisation, which issued 1,095,330 new shares at HRK170 per share, it added.

The company’s management board had opted not to go ahead with a contemplated third round of recapitalisation as it would not achieve the targeted financial goals, Petrokemija, based in Kutina, central Croatia, said.

A Cabinet meeting of the Croatian government held on 30 July decided to request state asset management officials to initiate the selection of a strategic partner for Petrokemija.

However, ministers have not as yet agreed that outright privatisation of the company is the best path forward, the Croatian Government Office said.

Erste Group Bank has noted that privatisation could transform the fortunes of Petrokemija if it delivered a strategic partner that could secure cheap gas supplies.